Tech Layoffs: Is Google planning another round of layoffs? CEO Sundar Pichai explains

Layoffs in the tech space have been brutal, there are no two ways about it. While some people assume that the worse is far behind, others believe that the worst is yet to come. Maybe that’s why rumours of yet another round of layoffs at Google are doing the round. In a recent Wall Street Journal Google CEO Sundar Pichai’s comments has led many people to believe that Google will lay more people off.

In the interview with The Wall Street Journal, Pichai stated that there might be some impending layoffs at the company. The CEO emphasised that the company is allocating personnel in accordance with its highest priority areas. 

Also read: Google layoffs were not based on performance, high performers with the highest ratings were fired

In an older interview from a few months ago, Pichai had stated that the tech industry’s objective for this recession is to be 20 per cent more effective. In a more recent interview, the CEO showed that Google is striving to improve its efficiency and is “simply having to look at every component of what we do.”

Pichai stated that the company is aiming to reengineer its cost base, based on a long-term game plan. He stated that, while progress has been made, there is still a tremendous amount of work to be done. “AI development is at its peak. We are directing as much of our resources as possible to the areas where the need is the greatest, and we are also relocating personnel there,” added Pichai.

Also read: Google messes up layoffs, fails to honour medical leaves and insurance of fired employees

Pichai  went on to say, “We’re attempting to do that in a variety of ways.” We are basically analysing every part of what we do in order to re-engineer our cost base for the long term, as we said on our most recent earnings call. We are undeniably focused on earning long-term savings. Although we are pleased with the development, a lot of more work needs to be done.” 

Google and other Big Tech companies have come up with a few unique ways to get their headcounts under a certain threshold. For example, Google, along with Amazon is offering one year’s salary to its employees in Europe to voluntarily quit. This is because EU laws make it very difficult for companies to lay people off en masse.

Also read: After laying off 12,000 people, Google cuts down employee perks-stationery, laptops, massages

Although Pichai would not confirm or reject the possibility of a second round of layoffs, he did state that the business is focused on enhancing efficiency and prioritising critical areas, and if needed, there might be another round of layoffs.

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